Thursday July 19, 2012
by Brien Lundin, editor Gold NewsletterKaminak Gold (
KMKGF) is engaging in one of the most ambitious drilling programs in the junior exploration sector, as exemplified by the latest assays from Coffee, the company’s flagship gold project in the Yukon.
The strong results for this latest release, combined with the aggressive nature of the 2012 drilling program, suggest that the company’s early-2013 resource estimate for the project could wow the market.
Kaminak has only scratched the surface of the Coffee project’s potential. Fully 85% of this vast, 150,000-acre property remains to be explored, and the company’s consistent ability to find gold at depth below the property’s myriad gold-in-soil anomalies makes this a truly district-scale opportunity.
The company is a rare bird these days, which is to say it’s a gold explorer with a stocked treasury. It recently added C$6.3 million in gross proceeds to its coffers, thanks to a bought-deal, private placement of flow-through shares.
The over-allotment option was fully exercised on a financing that issued three million shares at a price of C$2.10. The deal gives Kaminak over C$22 million in cash, an amount that should fund the exploration effort at Coffee through 2012 and beyond.
Given the pace of the drilling on the project, I expect Kaminak to keep the newswires humming in the weeks and months ahead.
With the gold market looking as if it may shake off the summer doldrums and make a significant up move, Kaminak looks priced to move at current levels. It’s a strong buy.
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